The syndicate will offer additional capacity to businesses performing well against ESG metrics

Specialist insurer Beazley has received in principle approval from Lloyd’s to establish Syndicate 4321 from 1 January 2022.

Syndicate 4321, which has been created under the Lloyd’s syndicate-in-a-box (SIAB) framework, will operate as part of a consortium arrangement led by Syndicates 623 and 2623.

Once fully approved, it will focus exclusively on offering additional capacity to businesses that perform well against environmental, social and governance (ESG) metrics. The syndicate will be led by Beazley’s head of market facilities Will Roscoe.

In its initial phase, Syndicate 4321 will accept directors’ and officers’ (D&O), healthcare, financial institutions, London market US cyber, property, marine hull, marine cargo and aviation business.

All premiums received by Syndicate 4321 aim to be invested responsibly, in line with Beazley’s responsible investment strategy.

Lower risk profiles

Beazley chief executive Adrian Cox said: “By creating the first specialist ESG syndicate at Lloyd’s, Beazley is taking an early step in delivering our commitment to embed ESG across our organisation, including our underwriting.

“Beazley has a track record of creating innovative underwriting vehicles and Syndicate 4321 delivers this to clients that have already achieved ESG standards.

“We continue to support all our clients, at whatever stage they are at in their ESG journey, with meaningful risk management and insurance capacity.”

Roscoe added: “Syndicate 4321 is an innovative and tangible way to support those businesses that invest in ESG by offering additional capacity.

“Evidence demonstrates that businesses with high ESG ratings are likely to have a lower risk profile and we are looking forward to building long-term partnerships with clients that, like us, value doing the right thing.”